diff --git a/package.json b/package.json
index 5c81db2153..943c443c59 100644
--- a/package.json
+++ b/package.json
@@ -77,6 +77,8 @@
     "querystring": "^0.2.0",
     "react": "^15.4.0",
     "react-addons-css-transition-group": "15.3.2",
+    "react-dnd": "^2.1.4",
+    "react-dnd-html5-backend": "^2.1.2",
     "react-dom": "^15.4.0",
     "react-gemini-scrollbar": "matrix-org/react-gemini-scrollbar#5e97aef",
     "sanitize-html": "^1.14.1",
diff --git a/src/components/structures/TagPanel.js b/src/components/structures/TagPanel.js
index a853a59212..2c498e9eee 100644
--- a/src/components/structures/TagPanel.js
+++ b/src/components/structures/TagPanel.js
@@ -15,82 +15,17 @@ limitations under the License.
 */
 
 import React from 'react';
+import { DragDropContext } from 'react-dnd';
+import HTML5Backend from 'react-dnd-html5-backend';
 import PropTypes from 'prop-types';
 import { MatrixClient } from 'matrix-js-sdk';
-import classNames from 'classnames';
 import FilterStore from '../../stores/FilterStore';
 import FlairStore from '../../stores/FlairStore';
 import TagOrderStore from '../../stores/TagOrderStore';
 import sdk from '../../index';
 import dis from '../../dispatcher';
-import { isOnlyCtrlOrCmdKeyEvent } from '../../Keyboard';
 
-const TagTile = React.createClass({
-    displayName: 'TagTile',
-
-    propTypes: {
-        groupProfile: PropTypes.object,
-    },
-
-    contextTypes: {
-        matrixClient: React.PropTypes.instanceOf(MatrixClient).isRequired,
-    },
-
-    getInitialState() {
-        return {
-            hover: false,
-        };
-    },
-
-    onClick: function(e) {
-        e.preventDefault();
-        e.stopPropagation();
-        dis.dispatch({
-            action: 'select_tag',
-            tag: this.props.groupProfile.groupId,
-            ctrlOrCmdKey: isOnlyCtrlOrCmdKeyEvent(e),
-            shiftKey: e.shiftKey,
-        });
-    },
-
-    onMouseOver: function() {
-        this.setState({hover: true});
-    },
-
-    onMouseOut: function() {
-        this.setState({hover: false});
-    },
-
-    render: function() {
-        const BaseAvatar = sdk.getComponent('avatars.BaseAvatar');
-        const AccessibleButton = sdk.getComponent('elements.AccessibleButton');
-        const RoomTooltip = sdk.getComponent('rooms.RoomTooltip');
-        const profile = this.props.groupProfile || {};
-        const name = profile.name || profile.groupId;
-        const avatarHeight = 35;
-
-        const httpUrl = profile.avatarUrl ? this.context.matrixClient.mxcUrlToHttp(
-            profile.avatarUrl, avatarHeight, avatarHeight, "crop",
-        ) : null;
-
-        const className = classNames({
-            mx_TagTile: true,
-            mx_TagTile_selected: this.props.selected,
-        });
-
-        const tip = this.state.hover ?
-            <RoomTooltip className="mx_TagTile_tooltip" label={name} /> :
-            <div />;
-        return <AccessibleButton className={className} onClick={this.onClick}>
-            <div className="mx_TagTile_avatar" onMouseOver={this.onMouseOver} onMouseOut={this.onMouseOut}>
-                <BaseAvatar name={name} url={httpUrl} width={avatarHeight} height={avatarHeight} />
-                { tip }
-            </div>
-        </AccessibleButton>;
-    },
-});
-
-export default React.createClass({
+const TagPanel = React.createClass({
     displayName: 'TagPanel',
 
     contextTypes: {
@@ -166,14 +101,16 @@ export default React.createClass({
     render() {
         const AccessibleButton = sdk.getComponent('elements.AccessibleButton');
         const TintableSvg = sdk.getComponent('elements.TintableSvg');
+        const DNDTagTile = sdk.getComponent('elements.DNDTagTile');
 
         const orderedGroupProfiles = this.state.orderedTags ?
             this.state.joinedGroupProfiles.sort((a, b) =>
                 this.state.orderedTags.indexOf(a.groupId) -
                 this.state.orderedTags.indexOf(b.groupId),
             ) : this.state.joinedGroupProfiles;
+
         const tags = orderedGroupProfiles.map((groupProfile, index) => {
-            return <TagTile
+            return <DNDTagTile
                 key={groupProfile.groupId + '_' + index}
                 groupProfile={groupProfile}
                 selected={this.state.selectedTags.includes(groupProfile.groupId)}
@@ -189,3 +126,4 @@ export default React.createClass({
         </div>;
     },
 });
+export default DragDropContext(HTML5Backend)(TagPanel);
diff --git a/src/components/views/elements/DNDTagTile.js b/src/components/views/elements/DNDTagTile.js
new file mode 100644
index 0000000000..6715bd8dd3
--- /dev/null
+++ b/src/components/views/elements/DNDTagTile.js
@@ -0,0 +1,86 @@
+/*
+Copyright 2017 New Vector Ltd.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import { DragSource, DropTarget } from 'react-dnd';
+
+import TagTile from './TagTile';
+import dis from '../../../dispatcher';
+import { findDOMNode } from 'react-dom';
+
+const tagTileSource = {
+    canDrag: function(props, monitor) {
+        return true;
+    },
+
+    beginDrag: function(props) {
+        // Return the data describing the dragged item
+        return {
+            tag: props.groupProfile.groupId,
+        };
+    },
+
+    endDrag: function(props, monitor, component) {
+        const dropResult = monitor.getDropResult();
+        if (!monitor.didDrop() || !dropResult) {
+            return;
+        }
+        dis.dispatch({
+            action: 'commit_tags',
+        });
+    },
+};
+
+const tagTileTarget = {
+    canDrop(props, monitor) {
+        return true;
+    },
+
+    hover(props, monitor, component) {
+        if (!monitor.canDrop()) return;
+        const draggedY = monitor.getClientOffset().y;
+        const {top, bottom} = findDOMNode(component).getBoundingClientRect();
+        const targetY = (top + bottom) / 2;
+        dis.dispatch({
+            action: 'order_tag',
+            tag: monitor.getItem().tag,
+            targetTag: props.groupProfile.groupId,
+            // Note: we indicate that the tag should be after the target when
+            // it's being dragged over the top half of the target.
+            after: draggedY < targetY,
+        });
+    },
+
+    drop(props) {
+        // Return the data to be returned by getDropResult
+        return {
+            tag: props.groupProfile.groupId,
+        };
+    },
+};
+
+export default
+    DropTarget('TagTile', tagTileTarget, (connect, monitor) => ({
+        connectDropTarget: connect.dropTarget(),
+    }))(DragSource('TagTile', tagTileSource, (connect, monitor) => ({
+        connectDragSource: connect.dragSource(),
+    }))((props) => {
+        const { connectDropTarget, connectDragSource, ...otherProps } = props;
+        return connectDropTarget(connectDragSource(
+            <div>
+                <TagTile {...otherProps} />
+            </div>,
+        ));
+    }));
diff --git a/src/components/views/elements/TagTile.js b/src/components/views/elements/TagTile.js
new file mode 100644
index 0000000000..124559a838
--- /dev/null
+++ b/src/components/views/elements/TagTile.js
@@ -0,0 +1,88 @@
+/*
+Copyright 2017 New Vector Ltd.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from 'react';
+import PropTypes from 'prop-types';
+import classNames from 'classnames';
+import { MatrixClient } from 'matrix-js-sdk';
+import sdk from '../../../index';
+import dis from '../../../dispatcher';
+import { isOnlyCtrlOrCmdKeyEvent } from '../../../Keyboard';
+
+export default React.createClass({
+    displayName: 'TagTile',
+
+    propTypes: {
+        groupProfile: PropTypes.object,
+    },
+
+    contextTypes: {
+        matrixClient: React.PropTypes.instanceOf(MatrixClient).isRequired,
+    },
+
+    getInitialState() {
+        return {
+            hover: false,
+        };
+    },
+
+    onClick: function(e) {
+        e.preventDefault();
+        e.stopPropagation();
+        dis.dispatch({
+            action: 'select_tag',
+            tag: this.props.groupProfile.groupId,
+            ctrlOrCmdKey: isOnlyCtrlOrCmdKeyEvent(e),
+            shiftKey: e.shiftKey,
+        });
+    },
+
+    onMouseOver: function() {
+        this.setState({hover: true});
+    },
+
+    onMouseOut: function() {
+        this.setState({hover: false});
+    },
+
+    render: function() {
+        const BaseAvatar = sdk.getComponent('avatars.BaseAvatar');
+        const AccessibleButton = sdk.getComponent('elements.AccessibleButton');
+        const RoomTooltip = sdk.getComponent('rooms.RoomTooltip');
+        const profile = this.props.groupProfile || {};
+        const name = profile.name || profile.groupId;
+        const avatarHeight = 35;
+
+        const httpUrl = profile.avatarUrl ? this.context.matrixClient.mxcUrlToHttp(
+            profile.avatarUrl, avatarHeight, avatarHeight, "crop",
+        ) : null;
+
+        const className = classNames({
+            mx_TagTile: true,
+            mx_TagTile_selected: this.props.selected,
+        });
+
+        const tip = this.state.hover ?
+            <RoomTooltip className="mx_TagTile_tooltip" label={name} /> :
+            <div />;
+        return <AccessibleButton className={className} onClick={this.onClick}>
+            <div className="mx_TagTile_avatar" onMouseOver={this.onMouseOver} onMouseOut={this.onMouseOut}>
+                <BaseAvatar name={name} url={httpUrl} width={avatarHeight} height={avatarHeight} />
+                { tip }
+            </div>
+        </AccessibleButton>;
+    },
+});